In: Accounting
You are in the train station waiting for your train to arrive. You see a vending machine from where you can buy snacks and chips for $3.50. Posted on the machine is a sign saying: “Property of XYZ Vendsolutions Pty Ltd”. You insert the coins required into the machine and out comes a packet of chips. However, when you open the packet of chips, you find bits of plastic inside and you don’t want to eat the chips. You want your money back. Required: With reference to the essential elements for the formation of a contract, explain: a) Did you enter into a contract in this scenario? (5 marks, maximum 500 words) b) If your answer is yes, with whom did you enter a contract? (5 marks, maximum 150 words)
No. in this situation, a legal contract cannot sustain.
Explanation:
A legal contract must be written or oral. For a contract to be present, there must be two or more parties joining in bring into being a contract. The parties must settle on all terms of the agreement, and finally, they sign the contract, or there is an agreement if it is oral. In the above situation, the person saw a vending machine, and the machine was the property of XYZ vend solutions Pty Ltd. This was not an solicitation to proposal or to contract, such as the display.
A lawful contract must comprise all essentials of a contract. Offer must be made by one party to another, and the other admits the contract. Consideration of the contract must be existing. Each party must have the capability to contract, signifying that the parties should not be a minor, insane, drunkard, and bankrupt person. There must be a shared agreement between the two parties. Finally, the contract must be a lawful act not to execute an unlawful action
If the food inside the machine was not good and caused injuries to the person, the person will take legal action against the company contends that the duty of care was breached. But the person will have to take what he has to get out of the machine because there is no reverse.
b) If your answer is yes, with whom, did you enter a contract?
There was no valid contract formed since a valid contract is between two or more parties, and all elements of a valid contract must be present in a contract.